Not Keen On Buying Loans From NBFCs, Says Federal Bank’s Srinivasan
Federal Bank intends to ride on its organic loan growth and not capitalise on the liquidity crunch faced by non-banking financial companies in the country, according to its Managing Director and Chief Executive Officer Shyam Srinivasan.
“Our credit growth is strong and [we] don’t want to pick growth that is on the edge,” Srinivasan told BloombergQuint. “NBFC slowdown has given us a pickup on the retail side. It’s not a buyout of a portfolio but their clients moving in.”
The bank also aims to blend its wholesale and retail lending ratio equally in the next two years from the current mix of 55:45, Srinivasan said, adding that their loans in personal and auto space have been clocking 100 percent growth due to low base effect.